Analyzing Globus Medical (NYSE:GMED) and Treace Medical Concepts (NASDAQ:TMCI)

Treace Medical Concepts (NASDAQ:TMCI) and Globus Medical (NYSE:GMED) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.

Profitability

This table compares Treace Medical Concepts and Globus Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Treace Medical Concepts	-27.93%	-39.66%	-22.24%
Globus Medical	3.51%	8.82%	7.06%

Insider and Institutional Ownership

84.1% of Treace Medical Concepts shares are held by institutional investors. Comparatively, 95.2% of Globus Medical shares are held by institutional investors. 24.4% of Treace Medical Concepts shares are held by company insiders. Comparatively, 18.5% of Globus Medical shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Treace Medical Concepts and Globus Medical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Treace Medical Concepts	0	7	0	0	2.00
Globus Medical	0	4	7	0	2.64

Treace Medical Concepts presently has a consensus target price of $12.86, indicating a potential upside of 95.10%. Globus Medical has a consensus target price of $73.30, indicating a potential upside of 4.59%. Given Treace Medical Concepts’ higher possible upside, research analysts plainly believe Treace Medical Concepts is more favorable than Globus Medical.

Earnings and Valuation

This table compares Treace Medical Concepts and Globus Medical’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Treace Medical Concepts	$187.12 million	2.18	-$49.53 million	($0.88)	-7.49
Globus Medical	$1.57 billion	6.05	$122.87 million	$0.64	109.50

Globus Medical has higher revenue and earnings than Treace Medical Concepts. Treace Medical Concepts is trading at a lower price-to-earnings ratio than Globus Medical, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Treace Medical Concepts has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500. Comparatively, Globus Medical has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Summary

Globus Medical beats Treace Medical Concepts on 12 of the 14 factors compared between the two stocks.

About Treace Medical Concepts

Treace Medical Concepts, Inc., a medical technology company, designs, manufactures, and markets medical devices in the United States. The company offers Lapiplasty 3D bunion correction system that combines instruments, implants, and surgical methods designed to surgically correct three planes of the bunion deformity. It also provides Lapiplasty mini-incision system designed to allow the Lapiplasty procedure to be performed through a 3.5cm incision. In addition, the company offers Adductoplasty system designed for reproducible realignment, stabilization, and fusion of the midfoot. Treace Medical Concepts, Inc. was founded in 2013 and is headquartered in Ponte Vedra, Florida.

About Globus Medical

Globus Medical, Inc., a medical device company, develops and commercializes healthcare solutions for patients with musculoskeletal disorders in the United States and internationally. The company offers spine products, such as traditional fusion implants comprising pedicle screw and rod systems, plating systems, intervertebral spacers, and corpectomy devices for treating degenerative and congenital conditions, deformity, tumors, and trauma injuries; treatment options for motion preservation technologies that consist of dynamic stabilization, total disc replacement, and interspinous distraction devices; interventional solutions to treat vertebral compression fractures; and regenerative biologic products comprising of allografts and synthetic alternatives. It also offers products for the treatment of orthopedic trauma, including fracture plates, compression screws, intramedullary nails, and external fixation systems; and hip and knee joint solutions, including modular hip stems and acetabular cups, as well as posterior stabilizing and cruciate retaining knee arthroplasty implants. In addition, the company distributes human cell, tissue, and cellular and tissue-based products. It sells its products through direct or distributor sales representatives, as well as hip and knee products through independent sales agents. Globus Medical, Inc. was incorporated in 2003 and is headquartered in Audubon, Pennsylvania.